HOUSTON, Nov. 6, 2014 (GLOBE NEWSWIRE) -- Whitestone REIT (NYSE:WSR) ("Whitestone"), announced today the acquisitions of Fulton Ranch Towne Center for $29.3 million and The Promenade at Fulton Ranch for $18.6 million.
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Fulton Ranch Towne Center and The Promenade at Fulton Ranch are located within Fulton Ranch, a 520-acre, high-end, lake-based lifestyle village in Chandler, Arizona. Average household incomes of $106,079 within Fulton Ranch rank significantly higher than the broader Phoenix MSA of $71,229. Both properties serve as local destinations for the surrounding 12,000 homes, Price Road Corridor and 90-acre Snedigar Recreation Center and Sportsplex. Hamilton High School, Arizona's largest high school, with 3,600 students is located across the street from Fulton Ranch Towne Center.
- The Fulton Ranch Towne Center acquisition totals 113,381 square feet of leasable space on 18.1 acres and includes two pad sites which can be developed, adding 18,660 additional square feet as well as an option to purchase a currently occupied 30,187 square foot building which is expected to soon be vacated. Occupancy of the center is currently 86.3%.
- The Promenade at Fulton Ranch acquisition totals 98,792 square feet of leasable area on 14.3 acres. Occupancy of the center is currently 76%.
The combined acquisitions expand Whitestone's footprint in the Phoenix area to over 2 million square feet, in 24 Community Centered PropertiesTM including future development land parcels. Whitestone funded the aggregate acquisition price of $47.9 million from its corporate credit facility which is currently priced at 2.66%. Current annual net operating income for the two properties totals approximately $3.6 million, or 7.5% of the purchase price. Both property acquisitions have considerable value-add upside and are accretive to FFO per share at the current combined occupancy of 81.3%, and expected to contribute $0.02 per share in 2014 and $0.10 per share in 2015, after interest cost.
James C. Mastandrea, Whitestone's Chairman and Chief Executive Officer, said, "Both Fulton Ranch Towne Center and The Promenade at Fulton Ranch were 'off market' acquisitions located in the technology hub corridor within the Chandler, Gilbert and Mesa, Arizona area. Both properties enhance our presence in the growing southeast valley of the Phoenix MSA, and expand our opportunities for economies of scale and leasing synergies with Whitestone's existing infrastructure. The properties feature balanced and complementary tenant businesses which meet the needs of the residents from the surrounding communities."
Mastandrea added, "Both properties are prominently located in the Price Road Corridor of Chandler, AZ, which is one of the fastest-growing high-technology manufacturing cities in the western United States. The Price Road Corridor features a workforce with employers including Intel, Bank of America, Wells Fargo, Verizon Wireless, and eBay/PayPal establishing a major presence in the Fulton Ranch Community, adjacent to the Price Road Corridor"
Mastandrea concluded, "We are pleased to add both properties to our portfolio of Community Centered PropertiesTM and we expect to increase occupancies over the next 12 to 18 months to a stabilized level of 91%-95%, which will increase rental income, net operating income and enterprise value."
About Whitestone REIT
Whitestone REIT (NYSE:WSR) is a fully integrated real estate investment trust ("REIT") that owns, manages, operates, leases and repositions and redevelops Value–Add Community Centered PropertiesTM. Whitestone focuses on value creation in its community centers, concentrating on local service-oriented tenants that comprise approximately 70% of its tenants. Whitestone's diversified tenant base provides service offerings including medical, education, casual dining, and convenience services. The largest of its 1,232 tenants comprised less than 1.9% of its annualized base rental revenues as of June 30, 2014. Founded in 1998, the Company is internally managed with a portfolio of 64 commercial properties in Texas, Arizona, and Illinois. For additional information about the Company, please visit www.whitestonereit.com.
Statements included herein that state the Company's or management's intentions, hopes, beliefs, expectations or predictions of the future are "forward-looking" statements within the meaning of the Private Securities Litigation Reform Act of 1995, which by their nature, involve known and unknown risks and uncertainties. The Company's actual results, performance or achievements could differ materially from those expressed or implied by these statements. Reference is made to the Company's regulatory filings with the Securities and Exchange Commission for information or factors that may impact the Company's performance.
CONTACT: Whitestone REIT: Suzy Taylor, Director of Investor Relations (713) 435-2219 STaylor@WhitestoneREIT.com Bradford Johnson, Vice President of Acquisitions (713) 435-2208 BJohnson@WhitestoneREIT.com